This Frost & Sullivan research service titled Analysis of the Personal Care Chemicals Market analyzes the personal care chemicals market in Brazil, highlighting market trends, market measurements, growth challenges, and market drivers and restraints. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: surfactants, fragrances, emollients, ultraviolet (UV) filters, propellents, and polymers compounds.

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Market Overview

The Rise of the Middle Class in Brazil Expands the Market for Personal Care Chemicals

Availability of Natural Ingredients Helps Participants Market themselves to Environment-conscious Consumers

The Brazilian market for personal care has demonstrated a remarkable double-digit growth rate for 15 years, which is not expected to slacken in the near future. The main driver for this growth has been the expansion of the ‘new middle class’, or the C class, and its higher purchasing power, which creates a vast market for personal care chemicals. From 2009 to 2011, about 10 million people joined the ‘new middle class’ demographic and in 2010, it accounted for nearly 46 percent of the personal care market’s total revenue. The market will also gain from the rise in the number of the aged, which is anticipated to triple by 2020. The use of sunscreen products had already doubled in 2010. Both genders have been especially accepting of products designed to beautify the skin and defy age.

The market will make inroads into newer segments with the availability of organic raw materials and the higher demand for renewable products. Costumers are showing a marked preference for natural resources and green materials in their personal care products. “The search for environment-friendly products and compounds has driven the use of organic raw materials; commonly extracted from seeds, fruits, and roots,” says the analyst of this research. “However, with the food and biodiesel markets competing with the personal care market for raw materials, the depletion of resources may lead to a rapid price rise in end products.” Companies have to ramp up their R&D efforts to identify new raw material sources for their natural products. Participants could also convince raw material suppliers to give priority to the personal care market, as it can offer them substantial financial returns.

Apart from the low availability of raw materials, the volatility of energy prices and other commodities affect the prices of the end product. These issues are compounded by the presence of several small manufacturers, which are formulating lower-quality products at lower prices in the ‘informal market’. Owing to their price advantage, the informal market is cornering considerable market share. “To beat back the competition from the informal market, the governments have to increase end users’ awareness about the larger economic fallouts of conducting business with illegal and informal manufacturers,” notes the analyst. “For their part, personal care chemicals companies should work on offering high-quality products at competitive prices.” Through the efforts of these various stakeholders, the Brazilian personal care chemicals market is poised for significant growth over the next six years.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Surfactants
• Fragrances
• Emollients
• UV filters
• Propellents
• Polymers compounds

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